What is the Smoot-Hawley tariff and what was its effect?
The Smoot-Hawley Act increased tariffs on foreign imports to the U.S. by about 20%. At least 25 countries responded by increasing their own tariffs on American goods. Global trade plummeted, contributing to the ill effects of the Great Depression.
What did the Hawley-Smoot Tariff do?
Smoot-Hawley Tariff Act, formally United States Tariff Act of 1930, also called Hawley-Smoot Tariff Act, U.S. legislation (June 17, 1930) that raised import duties to protect American businesses and farmers, adding considerable strain to the international economic climate of the Great Depression.
What were two results of the Smoot-Hawley Act quizlet?
Between 1929 and 1933, the money supply contracted by one-third, and as a result many companies couldn’t get loans. The problem was exacerbated by the failure of policy makers to prevent bank failures. Both of these explanations may well have a great deal of truth.
Why did critics of the Smoot-Hawley tariff claim it hurt US interests?
Smoot-Hawley contributed to the early loss of confidence on Wall Street and signaled U.S. isolationism. By raising the average tariff by some 20 percent, it also prompted retaliation from foreign governments, and many overseas banks began to fail.
What was the purpose of the Smoot Hawley Tariff Act?
What is the ‘Smoot-Hawley Tariff Act’. The Smoot-Hawley Tariff Act, known formally as the United States Tariff Act of 1930, was a piece of U.S. legislation raising import duties to protect American businesses and farmers. General Agreement On Tariffs And
How did the Smoot Hawley Act affect the Great Depression?
The Smoot-Hawley Act increased tariffs on foreign imports to the U.S. by about 20%. At least 25 countries responded by increasing their own tariffs on American goods. Global trade plummeted, contributing to the ill effects of the Great Depression. Prior to signing the Act, more than 1000 economists urged President Hoover to veto it.
Why was President Hoover not happy with the Smoot Hawley bill?
President Hoover was not happy with the Smoot-Hawley bill, especially the increased tariffs on many manufactured goods. In private, he described it as “vicious, extortionate and obnoxious,” but because it included increased tariffs on agricultural products, he felt compelled to sign it.
Why was the Tariff Act of 1930 named after Willis Hawley?
The 1930 Tariff Act is named after its sponsors. Congressman Willis Hawley from Oregon was the chairman of the House Ways and Means Committee. Senator Reed Smoot wanted to protect the sugar beet business in his home state of Utah.